Can I retire at age 40 with 985,000?

Use the below retirement simulation to view the chances of a successful retirement.
About Your Retirement ?
Current Age
Retirement Age
Current Savings $
Annual Deposits $
Annual Withdrawals $
Stock market crash:
Portfolio ?
% in Stocks:
% in Bonds:
% in Cash:
Modify Stock Returns:
0%
Modify Bond Returns:
0%
Modify Cash Returns:
0%
Modify Inflation:
0%
How much money do I need to retire?

This retirement calculator runs simulations based on past data from the S&P 500, 10 Year Treasury Bond, 3 month T-Bill, and US inflation. For each year of each simulation, a random return and inflation amount is chosen.

How to use: Enter your current age and the age when you retire. Then enter your current savings, the amount that you can save annually before you retire, and the amount that you plan to withdraw after retirement. Your annual deposits and withdrawals take inflation into account. For example, if you need $50,000 to live on in retirement using today's dollars, we will automatically take into account the cost of living for your retirement years. The same is true for your annual deposits. Next, decide if you'd like to simulate a stock market crash.

In the portfolio section, choose the makeup of your portfolio with stocks, bonds, and cash. Cash assumes that your money is stored in a savings account. You can then alter the future returns and inflation. For example, if the market has historically returned about 10%, but you think the future will be worse, modify the stock returns by -3%, and the future returns will average out to 7%. Investment fees can also lower stock market returns. Many index funds and ETFs offer extremely low fees and expenses.

Many people receive income in retirement, such as social security, pension plans, part time jobs, annuities, and other benefits. This would allow you to take out smaller distributions every year. Please note that taxes must also be considered, but are not used in this simulation. A 401k, Roth IRA, and Traditional IRA are taxed differently than a standard investment account, as are dividends.

Note: This assumes that the future is at least somewhat like the past. In reality, anything could happen. The Soviet Union collapsed, Japan's Nikkei Index is still well below its 1989 peak. Numerous other markets have changed drastically and never recovered. However, this online tool is helpful in retirement planning and estimating how much you might need for retirement, especially those hoping to retire early. We recommend receiving advice from a financial planner.

Want to retire with $985,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18%
1 years$81,340$80,616$79,909$79,219$78,545$76,001
2 years$40,268$39,518$38,791$38,086$37,403$34,863
3 years$26,578$25,825$25,100$24,402$23,730$21,274
4 years$19,735$18,984$18,267$17,580$16,924$14,572
5 years$15,630$14,884$14,176$13,503$12,866$10,623
6 years$12,895$12,154$11,456$10,799$10,180$8,049
7 years$10,941$10,207$9,520$8,878$8,279$6,260
8 years$9,477$8,749$8,074$7,448$6,868$4,959
9 years$8,339$7,618$6,954$6,344$5,784$3,982
10 years$7,429$6,715$6,063$5,468$4,928$3,231
11 years$6,684$5,978$5,337$4,759$4,239$2,643
12 years$6,065$5,365$4,737$4,174$3,673$2,176
13 years$5,541$4,849$4,232$3,685$3,203$1,800
14 years$5,092$4,407$3,802$3,271$2,808$1,496
15 years$4,704$4,026$3,433$2,918$2,472$1,247
16 years$4,364$3,694$3,113$2,612$2,185$1,042
17 years$4,065$3,402$2,832$2,347$1,937$873
18 years$3,799$3,143$2,586$2,115$1,723$733
19 years$3,561$2,913$2,367$1,911$1,535$616
20 years$3,348$2,707$2,172$1,731$1,371$518
21 years$3,155$2,522$1,998$1,571$1,227$437
22 years$2,980$2,354$1,842$1,428$1,100$368
23 years$2,820$2,202$1,700$1,301$987$311
24 years$2,674$2,063$1,573$1,187$888$263
25 years$2,539$1,936$1,456$1,084$799$222
26 years$2,416$1,819$1,351$991$719$188
27 years$2,301$1,712$1,254$907$649$159
28 years$2,195$1,613$1,166$831$585$134
29 years$2,097$1,522$1,085$762$528$114
30 years$2,005$1,437$1,011$699$477$96
31 years$1,919$1,359$942$642$432$81
32 years$1,839$1,286$879$590$391$69
33 years$1,764$1,218$821$543$353$58
34 years$1,693$1,154$767$499$320$49
35 years$1,627$1,095$717$460$290$42
36 years$1,564$1,039$671$423$263$35
37 years$1,505$987$628$390$238$30
38 years$1,450$938$588$360$216$25
39 years$1,397$892$551$332$196$22
40 years$1,347$848$516$306$177$18
41 years$1,299$808$484$282$161$15
42 years$1,254$769$454$260$146$13
43 years$1,211$733$426$240$133$11
44 years$1,170$698$400$222$120$9
45 years$1,131$666$376$205$109$8
46 years$1,094$635$353$189$99$7
47 years$1,059$606$331$175$90$6
48 years$1,025$579$311$162$82$5
49 years$993$553$293$149$74$4
50 years$962$528$275$138$67$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $985,000, adding $2,517 every year, while hoping to spend $21,280 every year in retirement. These numbers increase with inflation.
Reality usually performs much different than the expected returns. This uses historical averages, but anything can happen. In general, riskier investments have greater returns on average, but more volatility in the short term.
Age Total: 100% Stocks Total: 100% Bonds Total: 100% Cash Total: 54/39/7 Blend
39$985,000$985,000$985,000$985,000
40$1,088,066$1,035,861$1,020,594$1,144,904
41$1,176,407$1,063,977$1,032,142$1,211,743
42$1,273,046$1,092,757$1,043,364$1,281,891
43$1,378,806$1,122,211$1,054,226$1,357,719
44$1,494,595$1,152,350$1,064,693$1,439,768
45$1,621,411$1,183,183$1,074,728$1,528,634
46$1,760,355$1,214,719$1,084,291$1,624,972
47$1,912,639$1,246,968$1,093,343$1,729,505
48$2,079,596$1,279,938$1,101,838$1,843,027
49$2,262,698$1,313,637$1,109,732$1,966,412
50$2,463,561$1,348,073$1,116,976$2,100,624
51$2,683,969$1,383,254$1,123,520$2,246,724
52$2,925,887$1,419,186$1,129,311$2,405,878
53$3,191,477$1,455,876$1,134,292$2,579,372
54$3,483,123$1,493,329$1,138,406$2,768,624
55$3,803,448$1,531,549$1,141,590$2,975,192
56$4,155,347$1,570,541$1,143,779$3,200,794
57$4,542,003$1,610,309$1,144,907$3,447,323
58$4,966,926$1,650,853$1,144,900$3,716,863
59$5,433,984$1,692,176$1,143,686$4,011,709
60$5,947,434$1,734,277$1,141,183$4,334,392
61$6,511,971$1,777,155$1,137,312$4,687,697
62$7,132,765$1,820,808$1,131,984$5,074,694
63$7,815,512$1,865,233$1,125,110$5,498,765
64$8,566,488$1,910,423$1,116,595$5,963,635
65$9,392,607$1,956,371$1,106,339$6,473,410
66$10,301,490$2,003,070$1,094,238$7,032,612
67$11,301,530$2,050,509$1,080,183$7,646,225
68$12,401,977$2,098,674$1,064,060$8,319,740
69$13,613,021$2,147,552$1,045,749$9,059,206
70$14,945,893$2,197,126$1,025,125$9,871,290
71$16,412,964$2,247,375$1,002,057$10,763,338
72$18,027,868$2,298,278$976,407$11,743,442
73$19,805,627$2,349,810$948,033$12,820,523
74$21,762,793$2,401,943$916,784$14,004,408
75$23,917,605$2,454,645$882,504$15,305,927
76$26,290,161$2,507,883$845,028$16,737,013
77$28,902,605$2,561,617$804,185$18,310,817
78$31,779,341$2,615,807$759,795$20,041,830
79$34,947,257$2,670,405$711,672$21,946,020
80$38,435,983$2,725,360$659,618$24,040,985
81$42,278,168$2,780,617$603,430$26,346,117
82$46,509,790$2,836,117$542,894$28,882,785
83$51,170,494$2,891,791$477,786$31,674,539
84$56,303,966$2,947,571$407,873$34,747,328
85$61,958,345$3,003,377$332,912$38,129,751
86$68,186,680$3,059,125$252,648$41,853,323
87$75,047,425$3,114,726$166,815$45,952,772
88$82,604,995$3,170,081$75,137$50,466,373
89$90,930,374$3,225,084$0$55,436,300
90$100,101,782$3,279,623$0$60,910,728
91$110,205,412$3,333,573$0$66,945,282
92$121,336,251$3,386,805$0$73,590,813
93$133,598,966$3,439,176$0$80,909,550
94$147,108,901$3,490,536$0$88,970,069
95$161,993,158$3,540,721$0$97,847,939
96$178,391,803$3,589,559$0$107,626,441
97$196,459,183$3,636,864$0$118,397,346
98$216,365,385$3,682,435$0$130,261,790
99$238,297,842$3,726,062$0$143,331,222
100$262,463,100$3,767,517$0$157,728,462